Evidence of meeting #4 for Natural Resources in the 40th Parliament, 2nd Session. (The original version is on Parliament’s site, as are the minutes.) The winning word was public.
A recording is available from Parliament.
4:25 p.m.
President, Canadian Nuclear Safety Commission
Every leader manages things as he must. As far as I am concerned, it is always difficult to analyze and to measure all the risks before deciding on what to do.
If the reactor is not safe, we will shut it down. However, if we can attenuate the risks, we can try to find other ways to carry on operations in a safe manner.
4:25 p.m.
Bloc
4:25 p.m.
President, Canadian Nuclear Safety Commission
An expert is working with AECL on finding ways to attenuate the risks.
4:25 p.m.
Director General, Directorate of Environmental and Radiation Protection and Assessment, Canadian Nuclear Safety Commission
It means to decrease.
4:25 p.m.
Bloc
France Bonsant Bloc Compton—Stanstead, QC
All right. As I said, I am not a great fan of nuclear power. This is not my area of expertise.
Do I have a little time left, Mr. Chairman?
4:25 p.m.
Conservative
4:25 p.m.
Bloc
France Bonsant Bloc Compton—Stanstead, QC
Recently, there were three leaks. Were they considered accidents? Even though these were minor leaks, have you noticed an increase in the number of such accidents?
The NRU reactor is more than 50 years old; it is older than I am. Do you think that there will be further accidents in Chalk River?
4:25 p.m.
President, Canadian Nuclear Safety Commission
Everyone is saying that they are old machines. It is like a car: if you change the tires, the motor and all the rest—
4:30 p.m.
President, Canadian Nuclear Safety Commission
We always try to replace the old parts of the reactor. In fact, 75% of this reactor is new.
4:30 p.m.
Bloc
France Bonsant Bloc Compton—Stanstead, QC
You are comparing a nuclear reactor to a car. We may well put new tires on a 35-year-old car, but that will not prevent it from rusting.
4:30 p.m.
President, Canadian Nuclear Safety Commission
We are trying to update the old nuclear plants. We could extend the lives of these plants by taking measures and by rebuilding—
I'm not saying it right.
When you really refurbish, for example, Bruce Power and Point Lepreau, it's almost like building a brand-new nuclear plant. We put in new safety, new standards, new things in an old machine. In other words, we restructure the whole thing, and the number one priority for us is safety. In fact, when we put the new material in there it is according to a new standard of safety that is developed internationally.
So one can argue that the machine now will be running in a more safe state than before.
4:30 p.m.
Conservative
The Chair Conservative Leon Benoit
Merci, Madame Bonsant.
Thank you very much, Mr. Binder.
Yes, Mr. Anderson, just for a minute.
4:30 p.m.
Conservative
David Anderson Conservative Cypress Hills—Grasslands, SK
Sorry to interrupt you, Mr. Chairman. I'm just wondering if the witnesses have extra copies of this. Perhaps the media would be interested. If they don't, we'll try to get some for them or get some duplicated for them if they need them.
4:30 p.m.
Conservative
The Chair Conservative Leon Benoit
Were they distributed to the committee? There are extras at the back.
Thank you very much, Mr. Anderson. They certainly can be distributed to the media.
Thank you very much, Mr. Binder and Dr. Thompson for coming today. I appreciate it very much.
We will suspend the committee now for two minutes. If the witnesses could clear the table as quickly as possible and if the next witnesses from Atomic Energy of Canada Limited and the Canadian Nuclear Association could find their places at the table, we will reconvene in two minutes.
4:35 p.m.
Conservative
The Chair Conservative Leon Benoit
Order, please.
We will resume the meeting now with our witnesses. From Atomic Energy of Canada Limited, we have Hugh MacDiarmid, president and chief executive officer—thank you very much for being here—Bill Pilkington, senior vice-president and chief nuclear officer, and Michael Ingram, senior vice-president, operations.
Thank you, gentlemen.
From the Canadian Nuclear Association, we have Murray Elston, president and chief executive officer.
Thank you, Mr. Elston, for coming this afternoon.
I understand that Mr. MacDiarmid will be making a presentation on behalf of Atomic Energy of Canada.
Mr. Elston, you don't have prepared notes; you may have a very short statement to make. I understand, Mr. Elston, that you have to leave by about five o'clock or shortly after.
February 24th, 2009 / 4:35 p.m.
Murray Elston President and Chief Executive Officer, Canadian Nuclear Association
I'll stay a little longer.
4:35 p.m.
Conservative
The Chair Conservative Leon Benoit
That is, a little longer than five o'clock.
Any committee members wanting to question Mr. Elston, please keep in mind that it will have to be done in the first round.
Go ahead, please, Mr. MacDiarmid, with your presentation.
4:35 p.m.
Hugh MacDiarmid President and Chief Executive Officer, Atomic Energy of Canada Limited
Mr. Chairman, thank you very much.
Thank you for inviting us to speak to you about Atomic Energy of Canada today.
I am accompanied by Mr. Bill Pilkington, Senior Vice-President of Research and Technology, and Chief Nuclear Officer. His responsibilities as a manager include the operation of the installations in Chalk River. Mr. Michael Ingram, Senior Vice-President of Operations of the CANDU Division, is also here. He is specifically in charge of a refurbishment of the plants, like those at Bruce and Pointe Lepreau.
Before taking any questions, I would like to provide an overview of AECL's mandate and to review two issues that have recently been the subject of comment.
AECL has a dual mandate from Parliament. The first is to build a global commercial enterprise—
4:35 p.m.
Conservative
4:35 p.m.
Bloc
France Bonsant Bloc Compton—Stanstead, QC
Mr. MacDiarmid's notes are not bilingual. They are half in French and half in English. Could we have a copy in French?
Excuse me, sir, I just got the right copy.
4:35 p.m.
Conservative
The Chair Conservative Leon Benoit
Okay, I think we have that sorted out.
Please continue, Mr. MacDiarmid.
4:35 p.m.
President and Chief Executive Officer, Atomic Energy of Canada Limited
As I said, AECL has a dual mandate from Parliament. The first is to build a global commercial enterprise that designs, constructs, and services nuclear reactors. This business is based in Mississauga, Ontario. AECL's CANDU technology is a proven supplier of safe, clean energy to millions of people, here in Canada and in countries around the world.
The second mandate is to operate a national laboratory for nuclear science, which is located in Chalk River. This has led to the development of a world-class research and development program supporting both our CANDU fleet and the Canadian research and academic communities, as well as, most topically, our isotope production function.
On the topic of isotopes, there are five reactors in the world that produce the bulk of them. Typically, the Chalk River reactor has delivered approximately one-third of global isotope production. Last summer, the largest of the other four reactors, located in the Netherlands, was forced to shut down, and it is only now restarting. To make up the supply shortfall, AECL increased its production and has been supplying over half the global demand.
It bears mentioning that average Canadian requirements are roughly 10% of AECL's production levels. The vast majority of our production is for non-Canadian consumption.
Ensuring reliable supplies of isotopes and other essential R and D requires investment. The majority of the incremental $351 million that is being requested for the upcoming fiscal year applies to the program to upgrade our Chalk River laboratories, including improvements to the reliability of isotope supply.
We are very mindful of the need to acquire the CNSC licence renewal for the NRU by October 2011, and we're working very closely with the CNSC to that end.
That brings me to concerns that have been raised about leaks at Chalk River. I refer, honourable members, to reports on the subject from AECL and the CNSC that were tabled in the House by the Minister of Natural Resources. I want to emphasize that these reports clearly show that the public was never at risk whatsoever and that AECL strictly followed all established procedures.
I would also like to comment briefly on the provision in the 2008-09 supplementary estimates (C) for $100 million to continue ongoing life-extension work on two key reactors. AECL's ability to provide reactor life extensions is fundamental to CANDU's competitiveness. There's the potential to undertake 20 such life extensions over the next 15 years. The two life-extension projects currently under way at Bruce and Point Lepreau are very different in nature from each other. Both of them are first of a kind in their own right.
Unfortunately, the schedule has slipped, and unbudgeted cost increases have occurred. But these life-extension projects are not simply tightening a few bolts and applying a fresh coat of paint. It's a complex task to deconstruct and then reconstruct a nuclear reactor. In some respects, it's more complicated than building a new one.
We have put in place intense scrutiny and oversight procedures. We have made changes as necessary and are benefiting from lessons learned. We have assembled experienced, capable, and committed teams of professionals at both locations to deliver on our undertakings. While doing this, we will, of course, not compromise workplace safety.
Once the projects are finished, for 25 more years, our clients will have reactors that can produce electricity in a reliable manner and with few emissions. More than 50% of the energy used in Ontario comes from nuclear plants, and in New Brunswick and Prince Edward Island, the percentage is 30%.
To conclude, yes, there are challenges. As AECL has done for over 50 years, these challenges will be met and overcome. Beyond the challenge is a remarkable once-in-a-lifetime opportunity for this country. Global demand for electricity will double in the next 30 years. Demand for nuclear reactors is growing rapidly. This is a $2 trillion opportunity. AECL's history, its products, its Canadian partners, and above all its remarkable employees place Canada in a unique position to create an industry for the 21st century that will provide thousands of high-paying jobs. It is this opportunity that is foremost in our goals at AECL.
Thank you, Mr. Chairman.